$70 MillionSettlement in Medical Capital Ponzi Scheme
In re: Medical Capital Holdings. The firm was on the national steering committee which represented the interests of over 1000 investors and negotiated a $70 million dollar settlement with the broker-dealer that sold promissory notes in Medical Capital, a company purporting to purchase medical receivables at a discount using investors’ money; Medical Capital was revealed to be a Ponzi Scheme that cost investors hundreds of millions in losses.
$50 MillionJudgement against Ponzi Scheme Operators
Katz v. MRT Holdings, LLC ., et al. , 07-cv-61438 (S.D. Fla.). Ponzi scheme action, where Sonn | Erez appointed class counsel; the Court determined that the Firm had set forth substantial qualifications in the handling of similar matters. Thereafter, the Firm Obtained a $50 million judgment against Ponzi scheme operators. Sonn | Erez then appointed as counsel to Receiver for Ponzi scheme operators.
$16 MillionVerdict against the FDIC
The firm won this verdict at the federal appeals court, in a contract/securities action against the Federal Deposit Insurance Corporation.
$11.1 MillionVerdict against Smith Barney broker who sold away in violation of FINRA rules
The firm obtained a verdict of over $11.1 million, which included all the principal losses plus ordered the bank to indemnify the claimants for a $10 million state court judgment entered against them, for investors who sustained losses in a failed real estate development recommended by their Smith Barney broker who sold away in violation of FINRA rules and industry rules. Brokers are prohibited from recommending investments that are not approved by their brokerage firms, an illicit practice called “selling away”. The recovery represents 100% of the investors’ losses. The award is notable in that the arbitrators made Smith Barney liable for the amount the investors owed Wachovia Bank under a $10 million dollar final judgment against the investors who were guarantors of a loan made in connection with the failed development.
$4.5 MillionRecovery for negligence and negligent supervision
Banco National de Mexico S.A., Institution de Banca Multiple, Fiduciary Division, as Trustee of the Trust Agreement Numbered 15437-5 v. Morgan Stanley & Co., Inc. Case No. 12-01019: The firm represented Banco National de Mexico, S.A. (“Banamex”) as trustee of a trust which is beneficially owned by a Mexican family against Morgan Stanley and recovered $4,500,000. The FINRA arbitration panel made a finding of negligence and negligent supervision. The claim was based on Banamex’s allegation that Morgan Stanley caused a cross pledge to be recorded on its accounts with Bank Morgan Stanley, a Morgan Stanley affiliate, without its authorization. The cross pledge amounted to a guaranty on loans made by Bank Morgan Stanley to a third party. When the third party’s investments declined significantly in 2008-2009, Bank Morgan Stanley seized approximately $5,200,00 from the Banamex accounts based on an unauthorized cross pledge. The award is significant in that it is a very large FINRA arbitration award and represents the recovery of nearly all of the funds taken from Banamex. The trial lasted eight days and was defended the Greenberg Traurig law firm which represented Morgan Stanley.
$2.54 MillionRecovery for over concentrated position in the UBS Puerto Rico funds
Rodriguez Gonzalez vs. UBS Financial Services of Puerto Rico and UBS Financial Services. The firm represented a retired couple that sustained significant losses in UBS proprietary closed-end funds that invested predominantly in Puerto Rico bonds. The couple were customers of Jose “Whopper” Ramirez who has been fired from UBS and has received a Wells Notice from the S.E.C. in which it indicated that it recommended fraud charges be brought against Mr. Ramirez. The Claimants alleged that Mr. Ramirez recommended an over concentrated position in the UBS Puerto Rico funds and that he recommended the illicit use of a non-purpose loan to invest in securities. The FINRA panel awarded the Claimants $2,545,000.
$2.2 MillionVerdict for negligence in a securities action
The Firm obtained a $2.2 million dollar verdict against Painewebber for negligence in a securities action.
$1.37 MillionRecovery against Merrill Lynch
Robert Billings and Michele Billings v. Merrill Lynch, Pierce, Fenner & Smith, Inc. Case no. 11-01948 The firm recovered $1,376,463 against Merrill Lynch for investors who invested in Fannie Mae preferred shares. A Merrill Lynch broker recommended Fannie Mae preferred shares to his client in late July 2008 and within 45 days the company was in conservatorship and their investment was virtually wiped out. The award is notable for its size and is believed to be the largest Fannie Mae preferred recovery for any public investors. Merrill Lynch vigorously defended the case, The FINRA arbitration panel that Merrill Lynch breached its fiduciary duties to their clients.
$1.1 MIllionVerdict against Morgan Keegan for securities fraud
Cobb vs. Morgan Keegan & Co. (FINRA). The Firm obtained a $1.1 million dollar verdict against Morgan Keegan, in a case alleging securities fraud over the sale of Morgan Keegan closed-end and open-end mutual funds, known as RMK Mult-Sector High Income Fund (RHY), RMK Advantage Income Fund (RMA), RMK Select High Income (MKHIX), RMK High Income Fund (RMH), RMK Strategic Income Fund (RSF). The verdict and subsequent recovered amounted to 80% of the investor’s net losses.